The domestic stock market, which started strong due to the rise of U.S. semiconductor stocks, reversed course and fell sharply due to large-scale foreign selling. The KOSPI dropped below the 5500 mark, while the KOSDAQ fell below 700. Uncertainty surrounding the U.S. midterm election results and rising U.S. Treasury yields are weighing on investor sentiment.
As of 11:25 a.m. on November 4, the KOSPI was trading at 5508.88, down 139.91 points (2.48%) from the previous trading day.
Initially, the KOSPI attempted to recover above 5800 but surrendered all gains as foreign selling intensified. The index continued to decline, threatening to breach the 5500 level.
In the securities market, foreign investors led the decline with a net sell of 1.1672 trillion won. Meanwhile, individual and institutional investors bought a net 656.6 billion won and 339.5 billion won, respectively, but this was insufficient to halt the downward trend.
Most of the large-cap stocks are in the red. Samsung Electronics is trading at 213,000 won, down 2.96%, while SK Hynix has fallen 4.65% to 1,333,000 won. Other declining stocks include SK Square (-3.45%), Samsung Electro-Mechanics (-2.26%), LG Energy Solution (-4.73%), Samsung Biologics (-2.31%), and Hyundai Motor (-1.80%).
The KOSDAQ index also fell below 700, trading at 690.11, down 14.28 points (2.03%) at the same time.
In the KOSDAQ market, foreign and institutional investors sold a net 15 billion won and 23.4 billion won, respectively, while individuals bought a net 59.8 billion won.
Among the large-cap stocks, Alteogen (-8.71%), EcoPro (-0.28%), EcoPro BM (-0.80%), and Rainbow Robotics (-3.74%) are declining. Notably, HLB has plummeted by 20.02%. Conversely, some semiconductor-related stocks, such as Simtech (9.17%) and Juseong Engineering (3.55%), are showing strength.
Despite major semiconductor stocks like NVIDIA and AMD rebounding on the New York Stock Exchange overnight, the domestic market is struggling to withstand foreign selling pressure. As the U.S. midterm election results are being counted, concerns over rising Treasury yields and the profitability of AI investments continue to weigh on the market.
Lee Kyung-min, a researcher at Daishin Securities, noted that while the possibility of progress in peace negotiations between the U.S. and Iran has emerged, the final agreement and specific conditions remain unconfirmed. Additionally, the U.S. job openings in September reached 7.523 million, exceeding market expectations of 7.15 million, indicating a stronger-than-expected labor market, which warrants attention regarding U.S. monetary policy and Treasury yield movements.
* This article has been translated by AI.
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